Fortune down $700 million as media industry suffers advertising meltdown. Hearst Corp may close or sell Northern California's largest paper, San Francisco Chronicle, which reportedly lost $50 million last year. Also put Seattle Post-Intelligencer up for sale in January after years of losses; paper will fold if a buyer isn't found. Grandson of publishing legend William Randolph Hearst. William's father, George, was a prospector, land baron, U.S. senator who 'won' failing San Francisco Examiner newspaper as payment for gambling debt in 1880. Only child, William (d. 1951), assumed control in 1887, built nation's largest newspaper chain via sensational 'yellow' journalism. Infamously portrayed by actor Orson Welles in Citizen Kane. Today Hearst Corp. controls newspaper (Houston Chronicle) and magazine (Cosmopolitan, Esquire) divisions, cable networks (stakes in ESPN, Lifetime, A&E). Also TV, radio stations. Longtime chief exec Victor F. Ganzi resigned suddenly last June amid reports of clashes with Hearst family over direction of the company; replacement Frank Bennack Jr. has since appointed several new executives.